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trampoline. >> ready, set, hike. welcome, everyone, i am here for neil cavuto and this is "your world," and live at the white house where the debt talks wrapped up. and boehner saying no deal especially with the raw deal with the job markets and everyone is focused on $1 trillion in new taxes no one is focusing on the half traffic in likes he has signed. everyone but steve moore who is keeping track. i am confused. all i hear is 4-1 spending cuts it tax increases and that sounds good but you are saying that is not the whole story? >>guest: you are right. people forget, and i forgot that obamacare, the big health care
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reform bill had half a trillion of new taxes over the next 10 years including tax on health insurance companies on investment income and hospitals and pharmacy companies and on employers so it is a major tax increase, the biggest ever in the last 25 years. people forgot about it so when democrats say to make it balances we need a tax increase, what we wrote today, didn't you just pass a big tax increase last year? you want $1 trillion increase on top of that? >> and so many of the tax increases do not come online until years down the road, so, although it was passed, and you think you may not have been slapped with it yet, in 2013 and 2015 and 2018 you will be. >>guest: gentleman that is why people for got. they did not take place until 20 thin or 2014 and some in 2018
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for the health care plan. the question we have to ask, then, can the economy really get out of the rut with 9.2 percent unemployment and 14 million unemployed with $500 billion tax increase already in the works and, then, the talk of another $1 trillion in the debt reduction talks and it locks right now that boehner has moved off tax increases and good riddance. >> that will not happen. to me you have a 4-1 and i don't know how much the democrats can give and still keep cover. it appears whether it is accurate or not that 4-1 in terms of spending decreases, the american public -- we are headed toward the august 2nd deadline and why think we will come to an agreement before that despite what the president said today when someone asked if we have a contingency plan and he said we would meet the deadline. >>guest: i watched the press
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conference closely and listened to everything the president said, and he said, chris, if he had his way he would have another stimulus plan, not directly, but in israelly. and i think the two parties are so far apart dealing with this crisis this could go beyond august 2nd, and we may have a shut down of the government in the first week or two of august until this is settled. >> and to wrap it up, if we get to august 2nd, we will not necessarily default on our debt but the problem is you have the treasury secretary geithner having to decide, what i do or do not spend money on. that opens up a whole new can of worms. >>guest: that gives him a lot of power and that is why republicans are trying to say here is how you prioritize spending. the problem, the policies of a
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default on government debt is zero. the president and geithner are saying that as a scare tactic and the government is not going to default. chris, the 14th amendment prohibits the federal government from repudiating debt. >> the president can step in and as you said look to the 14th amendment for the ability to do so. thank you, sir. the wall street shows stocks diving on the jump debt crisis worsening with an emergency meeting that italy could be next. what makes the bailout of greece look like chump change in italy goes down. and now, the latest. italy, really, moves this up, don't they? >>reporter: this becomes big time and makes greece default look like chump change. we saw investors around the globe selling on any possible chance of a default in that country today. look over in asia: markets
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reeled. we saw japanese stocks fall under 1 percent in hong kong they lost nearly 2 percent and south korea lost 1 percent and in europe the losses were bigger and in italy they lost 4 percent and is france and germany last 2 percent and london still lost 1 percent weighing on the markets in the united states, obviously with the dow jones industrial average plunging today, what is really unnerving investors is opposition in the italian prime minister's silvio berlusconi's own party about proposed austerity measures by the finance minister there. that open session is what weighed on the markets. italy is the third largest economy in the euro zone and this could be a big deal for the global economy and obviously our markets interpret that here in the united states and a couple things happened on this. regular laters in italy because
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the bank stocks plunged five straight sessions imposed special rules on short selling and put an end to that so the banks could not continue to see such selling, and another thing, the cost of insuring the debt of italy today rose to the highest all-time on record to ensure against a default on the sovereign debt and just today italy's public debt sits at 120 percent of g.d.p. so there is big trouble over there and we saw big troubles and big concerns in markets across the globe. >> thank you very much. >> the latest poll shows that only 24 percent of americans said you should raise the debt limit to avoid an economic ask catastrophe and 69 percent who oppose raising the debt limit so is it the problem that you and others have failed to convince the american people we have a
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crisis here. >> let me distinguish between professional politicians and the public at large. the public is not paying close attention to the ins and outs of how a treasury option goes. >> the president dismissing the results from average americans saying the consequencing of not passing this will be catastrophic but my goes says in the is. gary have we ever gone through anything like we might go through, come august 2nd? >>guest: we have. three times. you have a chart of 1995 we went 4 1/2 months beyond the deadline so that is 4 1/2 months beyond this august 2nd. and the stock market had a great year and also in 1985, three months beyond and in 2002 we went three or four months so we
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have been down this road before and you know what? nothing bad happens. even this time, chris, we have had a couple of deadlines that geithner said if we did in the get it done, it will be armageddon and we are closing in on august 2 under and the market the past ten difficulties had the greatest runs it has had. >> the market does not appear to be afraid but we hear from geithner and other very smart people and the rating agencies say negative credit wise, not a down grade but they will look at the potential for a down grid, and they are talking very justly. >>guest: i heard that clip we started out with, and when i hear the phrase "professional politicians," i want to run the other way. was that the height of smugness? the professional politicians, i guess he is cloud bernanke in there, have gotten all the major
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turns in the past, wrong. moore pointed out great points: we will have enough money coming in to pay both principle and interest. all the government has to do is prioritize what it will spend on. that is like any family with not enough money coming in you say, well, you will in the get new shoes but we will by food, instead. that is what happens. >> the next white house meeting is tomorrow morning and you heard the president they will met every day until they come up with an agreement. gary, getting back to moore's comments doesn't it open up a new can of worms figuring out who is or is not paid? it opens up a new can of worms. >>reporter: it is time the government honestly learns to tell with less money.
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we all know, we can go through case by case by case whether it is the department of defense, department of education, social security, medicare, where there is abuse, wasteful spending, and you and do with less. we have done with less the past 200 years or so when the amount of revenues were not so big coming in to the government. we can do it again. it is time to prioritize. >> thank you, gary. and now small business holding back maybe it is time to hear this guy out, the head of the largest business federation laying out his jobs plan right now and at the bottom of the hour he will be here. but, first, will it be lights out for the light bulb ban? hoso really save you 15% or more
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>> that is not a spoof, that is happening outside of the fox news studios right now. that is one of our procedures, who, of course, back in the day was trying to make extra cash on side moon lighting and selling light bulbs on the black market. there could be no need for bulbs on the black market, on capitol hill the house will vote to repeal part of the 2007 energy bill that required certain light bulbs to be more energy efficient. critics call this dimwitted. and a republican congressman, what is it about the original energy bill passed in 2007 that bothers you so much? >>guest: if we could repeal the entire energy bill the country would be better for it. four years ago when this came through subcommittee and full committee, i fought against the standards for the light bulbs, i
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understood the direction we were going was not correct and you were left with the uncomfortable specific tack circle of the federal government dictating what kind of light you have in your home at night. look i work in a federal building all day and i understand the federal government dictates what type of light i use to read bills and amendments but when i go home at night the federal government does not have the right to dictate the light i use to read my newspaper. >> is it the cost light bulbs? what is most stubbing? or the way the light shines? >>guest: all of above. and, probably, what is most important is, again, the federal government has in business making this type of regulation. congress weighs in to an area where it does not belong picking winners and losers and as a consequence, at a we should preserve jobs we are losing jobs
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100 or so lost their jobs in september and october from the last light manufacturing plants to close down on the east coast. why did that happen? those jobs were sent to china and, by the way, they have five milligrams of mercury. we had our subcommittee hearings four years ago, the democrats were telling us that amount of mercury would in the be that big of a deal but the fact is, the epa has precise directions what you do in your home if one of these spreads. >> are they getting better? my understanding, and you hear from different sides but i hear that the newer bulbs have better lighting and more energy efficient and they make a lot of progress year over year from the original bulb that emit the horrible white light. >>guest: here is the deal. the technology will change. but, it was wrong for the u.s. government to dictate the
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winners and losers in 2007 and we said as of january 1, 2012, here is what you have to do. we did not know what the technology would be in five years and congress assumed where the technology would be. guess what? we were wrong. as a consequence people will suffer. they are losing jobs and choice. let the marketplace make the decisions. people will behave the right way. who wants to it is there with the romance of a soviet stairwell reading by your lamp at home? >> this probably stands a better chance, this repeal, passing in the house of representatives than in the senate, am i correct? >>guest: well, likely. but, we will pass it in the house and embarrass the senate and maybe they will hear from their constituents. i have been front and center from day one, against this but i get a lot of calls, why don't you do something about this. fortunately, today, we are
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getting a chance to try to even that score if we can go next after the ethanol mandated, next, i am happy with that. >> voting expected at 6:30. thank you, congressman. from granny to the grapes of wrath. the corks were flying at a restaurant. with more small businesses looking to slash jobs what is needed to get the jobs pumping.
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>> reports surfacing of a run in
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for paul ryan at a washington, dc restaurant with a customer blasting the congressman for drinking a glass of pricey wine, and he was confronted how he could live with himself for drinking expensive wine while pushing for scare -- medicare cuts but did this person go so far? we did invite paul ryan and the customer to appear and neither was available. chris, it wasn't just this professor who was up in arms about the wine, but a bunch of people were in on it? >> a lot of lefty websites jumped all over this. i suppose at this point they think that the professor's behavior was acceptable and mainstream and it is understand ability we they encourage this sort of behavior. it was unnecessary. it was out of line. and it was uncivil. and it was rude.
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and impolite and unprofessional. and, quite honestly, coming from an ivy league educated college professional who has spent little too much time in the faculty lounge to accost the congressman and the guests for a point where according to the newspaper management had to intervene and remove the good professor from the restaurant, because a scene was createdded, it is outrageous, the congressman ryan is a guy from wisconsin, not from massachusetts, a guy who hunts deer with a boy and arrow and sleeps on a a cot in his office and he does not order the bottle of wine and his friend is successful. and i know that is to be frowned upon these days by the likes of the professor and her friends but i did a little research, chris, and i found out something kind of interesting that i
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thought was, a couple of things. the first is that this professor worked for the campaign in 2004 of senator john kerry as campaign for the presidency of the united states and of course last year senator john kerry purchased himself a nice $7 million hand crafted wooden sailing yacht which he had custom built in new zealand, not by american workers, if you will, and he moved that $7 million yacht not to his summer home on nantucket or near his mansion in boston harbor, but, to rhode island so that he could save half a million in taxes for the first year. and i suppose that is the kind of spending that professor approves of and the state dinner that president obama recently held for the chinese communist leader where they served case after case of $400 bottle wine and, of courts, that was gain,
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so i find this to be ironic coming from someone who represents the party of the $400 john edwards hair cut. >> thank you, sir, outstanding work. nice to chat with you. more bad news from small businesses today, a growing number planning job cuts. chamber of commerce c.e.o. on what will put america back to work. he is here. and, this is serious today. burning our flag, attacking our embassy. and what is our response? giving them a new choice. we'll deliver better service, with thousands of new cell sites... f greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say.
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>> forget hiring, how about friesing and firing? a new survey showing two thirds of small businesses are not expecting to add jobs in the next 12 months. 12 percent looking to cut jobs. my guest announcing plans to get the jobs going. and now, president and c.e.o. of the chamber of commerce. tom, welcome to the show. i'm all ears because i talk about this subject each day and i have yet do hear a credible plan to turn the labor market around. >>guest: we talked about short-term and long term steps to create jobs in america mostly to be created by the private sector. first, in front of us, we need to move the free trade deals up to the congress, pass them, and get them implemented, failure to
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do so will cost us almost 400,000 jobs by midsummer because the fact the eu and canada have made deals with cre i -- career i -- korea and colombia. fair to do this will cost jobs. second, and this is fun, expand tourism. people come here and bring their money and it is like selling a product overseas to which they spend money and they create thousands and thousands of jobs. and we have to fix the visas a little and be encouraging about that. we have to take a careful lock at what to do on energy. i wrote to the president a few weeks ago, and he is saying the right thing. only trouble is, everybody that works for him is in the. we can dig our own gas, our own
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oil, sell our own timber, we would create hundreds and hundreds and thousands of jobs, pay a lot of taxes and pay a lot of royalty. infrastructure. reducing regulation. resolving some of the housing issues. all of these questions properly handled in a cooperative way. this is putting up -- businesses putting up money into energy. we could make a lot of jobs in a big hurry. >> and what about the points the administration has. you mention the free trade agreement but what about an infrastructure bank, are these points the president has made the last couple of days will they make a big difference? >> we support an infrastructure bank. but first you have to deal with the highway bill, the aviation bill, and your water bill. they all are trust funds. there is money there to be
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spent. but the people in the states and on the local level, are not going do put up their matching fund until they know it is not a six month extension but a long-term bill. and, let me say it has been 18 years since we had an increase in the federal user fee on the highway. if we want to recognize that the miles per gallon in trucks and cars are twice what they used to be, we can put more money to work, create a lot more jobs. you know who will get the jobs? the people that cannot work in housing because we are not building housing and they will have a shot at construction jobs. >> what about china? does that still, it remains to be the thorn in the side, we are losing manufacturing jobs to china and they are art federally keeping their currently down. doesn't that is to be addressed? >>guest: that is not the problem. there are china issues, sure.
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but our exports are growing like a weed. they are wonderful opportunities. the big issue we face and one of the issues we have to take care of to get rid of the uncertainty in the minds of people that are going to put their money down and create a job, that is, are we going to default on the debt or not? are we going to fix our expenditures in this country and our deficits or are we not? once that becomes very clear, all the things i was just talking about get easier to make happen. but when you run a large, large or small and you saw the surveys we did, people want did know that it is a stable environment in which they can invest their money and get a return. that is what we need. >> part of that is taxation. how do you view the debt talks moving forward as one side continues to say we need more taxes and the other says is against that with the back drop
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a 9.2 percent unemployment rate. >>guest: it is amazing, i heard what democrats in the senate are talking about, a $4 trillion bill with $2 trillion worth of real tax increases. get serious. you can't pass that out of either house. we do need additional revenue. you get revenues from the energy activity, you get revenue from what you will do in infrastructure, you get revenue from taking away certain deductions but to increase corporate taxes or personal taxes in the middle of a major recession is not a very smart idea. will we get revenues in the bills? yes. >> are you in favor of simplifying the tax code reducing the corporate tax rate? we have the second highest in the world right now? >>guest: we do and i am in favor of a restructuring of the nation's tax system. we need, we have a very simple set of issues. 5 percent of the people pay 50
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percent of the taxes. 50 percent of the people that are employed pay no taxes at all but social security taxes. we are the high of the taxed nation in the word in terms we pay double taxation. if i sell something in europe i have to pay a tax there if i build it there and plus a tax back here only country in the world that does that. do we need reform? yes. i don't think we can get real tax reform done define now and august 2nd, so we will have to so agreements on what we do on spending which by the way, nobody is put on the table, and we will have to have agreements if this is need for revenue, but not tax increases. >> thank you, sir. >>guest: thank you very much. >> democrats accusing republicans of taking the easy way out in the debt talks and my guest wondering, what have
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>> sad day for stocks but good days after the close, with alcoa rising their earnings from last year with sales ahead of expectation, so that is good top line growth and the c.e.o. saying that "although the economy is uneven the overall outlook for us is positive." the shairs trading higher after hours after a rough day on wall street. the president just wrapping up another round of debt talks with congressional leaders, but are we closer to a deal? and mike is at the white house with the latest. the president spoke and then john boehner spoke. anyone speaking recently not
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last few minutes after the meeting concluded? >>reporter: our colleague on capitol hill talked to majority leader scan -- cantor in the house of representatives and he said we have differences over taxes and republicans have not been willing to move in temperatures of increasing taxes during this difficult economy, and sources say that president obama offered to raise the medicare eligibility inch from 65 to 67 years old as an example of trying to be willing to compromise giving up a democrat sacred cow, that being entitlements in exchange for more taxes which is something the republicans do not want to give up. bottom line, we understand both sides will be back to the table after 90 minutes after meeting last night, they will get back to the tail -- table tomorrow morning. >> i thought it was a lot of same thing this morning and this afternoon when we heard from both the president and speaker boehner.
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but i found it interesting when the president was pushed about the august 2nd date and a contingency plan he was steadfast in the belief they would get a deal done by august 2nd and did not dress the contingency. >>reporter: he does not want to talk about contingency plans and wants to talk about the grand deal. that was the position last night. we still get read-outs of the meeting this afternoon but the language was colorful between the white house, president obama, and the speaker of the house john boehner. here is a sample. >> it will not get easier it will get harder. so we might as well do it now. pull off the band-aid. eat our peas. now is the time to do it. >> i want to get this. i want do do what i think is in the right, best interests of the country. but it takes two to tango and they are not there yet.
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>> the speaker means cutting spending. >> thank you, mike, from the white house. senate democrats not passing a budget since april of 2009 but that has not stopped a spokesman for majority leader harry reid from blasting republicans over the debt talks saying "senator reid believes the stakes are too high for republicans to take the easy way out," and he is committed to meeting each day until they have a deal. former carter pollster says democrats have no room to talk. let me ask you this: how did the democrats shove all this legislation down the throats of the men and women when they had control of the senate, house of representatives and the white house. >>guest: they did not want to pass a budget that would hurt them. the problem we have in washington, the republicans are talking about how they are changing things they abandoned
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getting rid of obamacare. the fact is, they are entrenched in their political position. the president could have sold gold in december when the issue of taxes was on table and he got the commission report. his commission, which he disowned, if he took that and said, we need to do a grand bargain. >> why do you thing he didn't? it gave him cover, it was from the bipartisan commission. >>guest: a report of the commission, there were 11 members, because, you know, the problem with the president, i'm sorry, there is an elephant in the room and it time to say it, this guy for watching him friday with the unemployment numbers he spent a year on passing health care, instead of dealing with jobs and the economy, and he has an agenda that is focused politically and the problem is, this is a whiff of this guy now
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i saw on friday and the question, i lived through this with president carter, does this guy have any idea what he is doing? that is on him. he has a problem. talking a game and doing a game is another thing and the problem is the string out here and the republicans are just as bad. they are in of going do move off their position but the point is, the president is supposed they lead. what is the big deal? and the democrats in the house are in open rebellion. it is not just the republicans. i am not sure he can deliver democratic votes. he is desperate for an agreement because he needs one. the president needs one. he needs something. >> both sides are firmly entrenched, do you think the american people voted, whether they vetted republican or democrat, didn't they vet -- vote for those they thought could get consensus?
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>>guest: they think they are the only option for america? the frustration in this country, the sense that the mainstream has against both parties in washington, and their failure, they are opening the door to another answer and i want to tell people, if you think 1992 conditions produced a ross perot who was leading and would have won if he had not announced he was insane, the conditions today are much, much worse and somebody would can draw from both parties, the political parties will be threatened. >> what do you make of the poll with the majority of the people polled did not want the debt ceiling raised, they do not see what the president and members of the administration see this is catastrophic? >>guest: the feeling is there is a wolf at the door over a
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budget agreement, or just that they are saying enough of the spending. the problem the president and washington has and i am not worried about 10 years from now i am worried about an economy in deficit, $1 trillion more this year and next year. they are not serious about cutting this. >> good to see you, pat. the u.s. embassy under attack in syria. how is the united states responding? in pakistan they are burning our flags. and we are giving them millions. [ male announcer ] there's more barbeque time in every bag of kingsford charcoal. kingsford. slow down and grill.
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>> our flag on fire, the u.s. embassy under attack as was the american ambassador's residence, people described as "thugs," reaching the wall of the embassy compound and breaking cameras and bonds and the united states is seeking compensation for the damage. meanwhile the united states announcing cutting back aid to pakistan. $800 million in military aid is being withheld after they decided to cancel vistas for 100 military trainers and my guest says the cuts are a good start. lieutenant colonel peters joins me. welcome. this is 40 percent of our annual aid to pakistan. should we retract the rest of it, as well? >>guest: i wish we could cut all aid to pakistan. pakistan is a rogue state. the pakistani military and security services are addicted
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to terror and we keep giving them money for another fix. but we can't jut -- just cut it off but freaks the $800 million. we cannot just cut it off because we have foolishly trapped our troop whose depend on a supply line that is almost 1,000 miles through pakistan for food, water, band-aids and spare parts. it was crazy to structure it this way. i hope in the mid-to long term our leaders will have the vision and the sense to realize we cannot reform pakistan and by continuing to indulge the pakistanis who attack india with terrorism, who back the afghanistan taliban we are state sponsors of terrorists. good start. not enough. see what is next. hope that our government doesn't fold. i think the good sign is our
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government is finally, finally, in the face of overwhelming evidence, pakistanis were hiding bin laden, et cetera, they are wising up. admiral mullen, the outgoing chairman of the joint chiefs is measured in his speech last week accused the pakistani intelligence of killing one of the leading journalists. that tells me something is changing. it is about time. >> a lot of people are saying in support of this move, we are done trying to win the hearts and mines of pakistanis and by tightening the noose that could force them to be amenable to our needs than they have been. do you agree? >>guest: the pakistanis regard us as an enemy and they take us for all they can get. when we freeze the stuff they need such as body armour and
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night vision goggles but the demonstration in syria was run by the syrian government organized by the security forces and the syrians have upped the ante. i have to give a shout out to our ambassador in syria, he did something brave, unlike most of our kip -- zip -- diplomats, and his presence in the street stopped at least a massacre, and it shows the scenes are very mad at us. >> thank you, lieutenant colonel. all right, left in a seat pocket. how did this get on this? an investigation is underway, why my next guest says look no further than this.
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the f.b.i. now getting involved after cleaning crews in newark airport found a stun gun in seat pocket of a jet blue airplane. my next guest says it's time to stop a patdown and spend time looking for real dangers. we'll get to the t.s.a.'s state in the a moment. but first, the, kate, i know people are annoyed at the tactics used by the t.s.a. but is it fair to expect them to find and compensate every single piece of contra band? >> the food workers an grown workers aren't prescreened. either the ones that take food to plan or the ones from the airport to the restaurant and stores. the u.s. passenger mail, the u.s. postal service mail that weighs less than one pound is not screened. so i can think of a dozen ways that that stun gun got on the plane. it's very similar to 9/11 when
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the box-cutting knives were put on the plane by ground workers to be found by terrorists. we have a real problem with security and it needs to be fixed. frankly, t.s.a. has never caught terrorist at a check point. so why are we spending trillions of dollars a year on t.s.a. if they're that ineffective? >> at the same time, we haven't had a major terrorist attack in a plane since 2011. the ones that we've had the christmas day bombing, almost christmas day bombing and the almost shoe bomber were able to stop those from happening or they were stopped from happening before it did. >> yeah, but here the point. in amsterdam when the suspect was walked to the plane without a passport and bought a ticket with cash one way going to detroit without a winter coat, there was every red flag in the world and he want stopped by security. a week-and-a-half ago there was another nigerian doing dry runs with expired boarding passes and identification card
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from a college which t.s.a. is not supposed to accept but they did. i'm not saying we don't need t.s.a., we do. but we need a smarter, leaner one that's more effective. we're paying for security, not real security. we have grandmothers taking off their diapers that can't walk and not being given a diaper. 6-year-olds are patted down. this is a really bizarre in america. >> here is the t.s.a. statement -- >> kate, i have to leave it there. thank you so much. we appreciate it. >> okay. >> good seeing you. >> thank you. >> fox has a new show called $5 footlong. my good friend eric bolling is part of it. it should be exciting and it's up next. i'joy, everybody.
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